India's Crude Import Bill rose 48.4% year-on-year to $74.8 billion during April-August of FY27, despite a marginal decline in import volumes, as higher international crude prices increased the cost of oil purchases, according to Petroleum Planning and Analysis Cell (PPAC) data.
Key Highlights
- India’s crude import bill jumped 48.4% to $74.8 billion despite a 0.4% decline in volumes.
- India’s crude basket averaged $90.19 per barrel in August, sharply higher than $69.11 last year.
India imported $24.4 billion more worth of crude compared to the previous year between April-August. The volume of crude imports fell 0.4% to 100.7 million metric tonnes (MMT) from 101.1 MMT. The value of crude imports rose by 62%, to over Rs 7 trillion in rupee terms.
Crude Oil Prices Push India’s Import Bill Higher
The average price of the Indian crude basket rose 30.5 per cent from $69.11 per barrel in August 2025 to $90.19 per barrel in August. This was also 9.9% up from the July average of $82.04. For Brent, prices averaged $90.84 per barrel in August, up from a year earlier when they averaged $68.21.
Global crude prices have been associated with worries of supply disruptions in the current conflict in West Asia. Concerns about the availability of Gulf crude have intensified because of disruptions in shipments, and the tensions on key oil transportation routes.
The International Energy Agency (IEA) on September 18 reported that renewed fighting had again disrupted regional oil supply levels, adding that potential continued supply shortages could add to price pressure.
Also Read: India's Exports to BRICS Markets Surge 34% in April-August
September Crude Prices Rise Further
Crude prices have increased further in September. According to PPAC data, the Indian crude basket climbed to $123.86 per barrel on September 18, compared with $99.35 on September 2.
The crude import dependence of the country remained high throughout April-August 2017 at 88.1%, which is marginally lower than 88.3% in April-August 2016. Domestic crude output, too, fell 11.4 MMT compared with 11.9 MMT a year ago, leaving India's dependence on foreign supplies high.
India’s Overall Energy Import Bill Also Increases
The increase in crude prices has contributed to a broader rise in India’s energy import costs. India’s net gas and oil import bill increased 34.7% to $66.8 billion during April-August from $49.6 billion a year earlier.
During the same period, the value of gross petroleum imports (cps) increased 36.8% to $81.8 billion. India's total merchandise imports rose to 22.5% from 19.5% a year ago due to Petroleum imports.
Higher Oil Costs Add Pressure to Trade Deficit
The rise in energy import costs has also contributed to pressure on India’s external trade balance. India's merchandise trade deficit increased to $147.1 billion in April-July, from $123.9 billion in the same period a year ago.
If crude prices continue to rise, it will further impact on the country's external balance as the external price of energy imports will rise. In the first quarter of FY27, India's current account deficit was $4.2 billion, representing 0.5% of GDP, which is up from $3.4 billion, or 0.4% of GDP, in the same period last year.
